If I Need Money in a Hurry is a Payday Loan the Best Option?


A payday loan is known for being a speedy loan to organise. They were originally set up so that people who needed money in an emergency could get it quickly and so the loans can sometimes be arranged in just a few hours. This can be very useful if you do need money fast. However, it is worth asking yourself whether this type of loan is the best option for you. There are other options that you could consider so that you can compare them and see which will be best.

Savings

If you have any savings then you should use these rather than borrowing money. It can be difficult to part with savings, especially if we have worked really hard to get them or if we are saving up for a specific thing that we really want. However, borrowing money is expensive and if we can avoid it by using our savings then this is a really sensible thing to do. You will be able to start saving again and you will be financially better off than if you had the loan and had to pay the interest and charges associated with it.

Overdraft

An overdraft can be a very expensive way to borrow money in some circumstances so it is really important to be careful if you choose this option. If you have an authorised overdraft then the cost is not as high as a payday loan in most circumstances (although you will need to check). However, if you have an unauthorised overdraft then the costs could be higher, but it will depend on how long it takes you to repay the overdraft. It is well worth looking at the costs of these before using them. You will also need to be very careful to make sure that you repay them really quickly.

Credit Card

A credit card can be a cheaper way to borrow but it depends on the interest rate on the card and how long you take to repay it. You will have the option of paying it all off before you get charged any interest which is the best thing to do if you can. However, if you need a loan then it is very likely that you will not be intending to do this. However, the sooner you pay it off, the cheaper it will be and so you need to keep on top of those repayments and make sure that you are doing everything you can to ensure that you are keeping your spending down so that you can repay it as soon as possible. It can be tempted to keep paying the minimum month after month but this can get very expensive and it can take years to pay off the debt this way. A credit card is only a quick way to borrow money if you already have one. If you have to apply for one then this can take a long time and you may find that you will not be able to get one in time.

Payday Loan

Payday loans vary in price and how much you get charged will depend on how much you borrow and how long for. It is therefore worth getting a quote so that you can compare it to other borrowing methods and see what you think. They can be set up in a matter of hours, depending on which lender you go with and so they are certainly quick. The thing to bear in mind with these is that you usually have to repay them in one lump sum. This is not always easy for everyone and so it is important to make sure that you are aware of exactly how much you will have to repay and when so that you can budget carefully for it.

So, as you can see, it will depend on your circumstances and what options you can find as to whether a payday loan will be the best option for you. It is good to stay open minded and examine all of the options though as you could find that there are options that you had not considered that will be affordable and suitable. It is good to spend some time looking in to it as well as if you rush into things you could end up regretting the decision that you have made. It can be easy to be in a panicked state when you are looking into this sort of thing as you are desperate for money. It may help you to be able to discuss things with someone else who may be able to look at it in a calmer manner which could be beneficial. Even if you do not choose to do this, try hard to think logically and carefully and stay calm so that you make the best decision for you, that you can.

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